Diamonds North Resources Ltd.
TSX VENTURE : DDN

Diamonds North Resources Ltd.

January 08, 2007 08:00 ET

Diamonds North Resources Ltd.: Amaruk Project Update; Diamond Results Pending for Five Kimberlites-Plans to Drill 60 Targets

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 8, 2007) - Diamonds North Resources Ltd. (TSX VENTURE:DDN) provides an update and timeline for the processing of kimberlite material collected from the 2006 drilling program on the 100% owned Amaruk project in the Pelly Bay Diamond District of Nunavut. Approximately 3000 kilograms of kimberlite collected by reverse circulation drilling from the first five kimberlites drilled was submitted to SGS Lakefield Laboratory for caustic fusion and diamond picking (see Table 1).

Due to a back log of samples being processed at the laboratory and a resulting lack of kilns required for the caustic fusion process, Diamonds North's processing was delayed. The Company has been informed by the laboratory that a total of seven kilns have now been dedicated to Diamonds North's Amaruk samples. The first sample being processed is from the Umingmak kimberlite and the results are expected late January.

It is anticipated that the diamond results for all 5 kimberlites sampled by drilling in 2006 will be received periodically throughout the first quarter of 2007. Upon receipt of diamond data from the laboratory and verification by the Company the results will be released.

Additionally, about 1000 kilograms of kimberlite from 8 new and separate float occurrences has also been submitted to SGS Lakefield for caustic fusion and microdiamond recovery (see Table 2).



Table 1 Table 2
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2006 Drilled Kimberlites Sample Size 2006 Float Occurrence Sample Size
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Kimberlite Name Lab Weight Float Name Lab Weight
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Umingmak 579 kg KFS-1 150 kg
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Qavvik 483 kg KFS-2 166 kg
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Walrus 1042 kg KFS-3 70 kg
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Beluga 616 kg KFS-4 122 kg
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Char 375 kg KFS-5 175 kg
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KFS-6 78 kg
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KFS-7 137 kg
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KFS-8 131 kg
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With over $11 million in cash and an additional $6 million in marketable securities the company is planning an aggressive exploration program for 2007. To date, a total of 300 airborne geophysical targets have been identified on the central block of the project and approximately 60 targets are scheduled for drilling this year. Approximately 40% of the Amaruk project has been flown with detailed geophysics and the existing targets have been identified from only 50% of the available data. Interpretation of the remaining 50% of the airborne data is underway. More targets are expected to be identified.

Drilling is expected to start by mid May to early June after the completion of an intensive geophysical program to further prioritize targets. The 2007 exploration program will include approximately 50,000 line kilometres of additional airborne geophysical surveying and mini-bulk sampling of any kimberlites warranting larger sample analysis. Diamonds North is currently finalizing exploration plans, budgets and contracts for the Amaruk project and a detailed program will be released in due course. Contracts for airborne surveying and drilling have been secured.

Bruce Kienlen (P.Geol) and Graham Gill (P.Geo) are Diamonds North's qualified persons reviewing the data for these projects.

Diamonds North is a dynamic successful exploration team focused on strategically advancing diamond opportunities and is determined to discover Canada's next diamond mine.

On behalf of Diamonds North Resources Ltd.

Mark Kolebaba, President & CEO

Statements in this press release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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